Standard Profit Center Hierarchy is necessary to group in hierarchical order the profit centers. It is also prerequisite for creation of Profit Center. This quick guide is for creating standard hierarchy for profit center accounting in FI. You are also able to do it in CO.
Transaction Code: KCH1
Menu: Accounting -> Financial Accounting -> General Ledger-> Master Recordsv -> Profit Center -> Standard Hierarchy -> Create
When you execute the transaction, choose your controlling area.
After continuing, on the next screen give a name of your profit center group and hit “Enter”.
Give a short description of your profit center hierarchy. If you prefer you could create additional levels and assign profit centers, but from now I will leave it as it is.
To insert Profit Center Group click in Lower or Same Level.